Scania’s wholly-owned Chinese factory has obtained its 'birth permit'—has the commercial vehicle version of the 'catfish' arrived?

By Pu Zhenyu On September 8, the Ministry of Industry and Information Technology (MIIT) released the 'List of Road Motor Vehicle Manufacturers and Products (Batch 398)', which states: 'Approval is granted for all products manufactured by Scania Manufacturing (China) Co., Ltd. listed in the Announcement, with the production address changed from the original registered location to No. 1 Zhongrui Avenue, Chengbei Subdistrict, Rugao City, Jiangsu Province.' This means Scania has officially obtained independent production qualifications in China. It also marks the first time a European heavy-duty truck brand has achieved localized production in China through a wholly-owned model following China’s removal of foreign equity ratio restrictions on commercial vehicles—breaking away from the previous traditional models of joint ventures or licensing agreements. According to official information, as a member company of TRATON Group under Volkswagen AG, Scania serves over 100 countries and regions worldwide, with business spanning trucks, buses, engines, and more. Scania’s localization strategy in China began five years ago. In 2020, China removed foreign equity ratio restrictions on commercial vehicle manufacturing in its 'Negative List for Foreign Investment Access', providing Scania with the necessary policy conditions to independently obtain production qualifications. That same year, Scania inaugurated a new industrial production base—100% owned by Scania—in Rugao, Jiangsu. In June 2022, construction of the Rugao base commenced. In October 2023, the groundbreaking ceremony was held for Phase II of the powertrain project at the Rugao base. In 2024, the Rugao base was completed and is scheduled to commence operations in Q4 2025. In August 2025, Scania China began publicly recruiting dealers. The Rugao base is officially positioned as 'Scania’s most advanced and sustainable industrial production base globally'. Targeting carbon neutrality, the base aims to reduce dependence on fossil fuels—and thereby lower carbon emissions—through various measures, including the use of biofuels and green electricity. This initiative also lays the groundwork for Scania to qualify for China’s diverse 'dual carbon' support policies.

How do you evaluate China’s new-energy vehicles?

In November 2025, Volkswagen’s first end-to-end R&D and testing center outside Germany was inaugurated in Anhui Province. It has already achieved a complete local R&D closed loop—from design and development to testing and production—with all decision-making conducted locally, shortening product development cycles by approximately 30%. 'China is the world’s most competitive and innovative automotive market,' said Dr. Ralf Brandstätter, Chairman and CEO of Volkswagen Group China. To date, Volkswagen has invested around €3.5 billion in Hefei, establishing a comprehensive new-energy vehicle industrial ecosystem covering R&D, manufacturing, and supply chains. 'By expanding our R&D footprint in Hefei, our ability to respond rapidly to local market demands will be significantly enhanced.' Dr. Brandstätter added that Volkswagen will accelerate the rollout of electrified products in China this year at 'Chinese speed', with over 20 new-energy vehicle models expected to launch throughout the year. By 2030, Volkswagen plans to offer approximately 50 new-energy vehicle models in the Chinese market—many of which will also be exported to Southeast Asia, the Middle East, and other regions. Oliver Blume expressed full confidence: 'Collaboration with Chinese partners in electric mobility, digitalization, and intelligent mobility solutions has strengthened Volkswagen’s innovation capabilities both in China and globally. Our practices in China also provide transferable insights for the Group’s transformation and development in the European market.' Hildegard Müller, President of the German Association of the Automotive Industry (VDA), stated that the German and Chinese automotive industries are highly complementary. The Chinese market is not only one of the world’s largest and fastest-growing automotive markets but also a vital arena for piloting cutting-edge technologies and driving industrial innovation. German automakers bring strengths in safety standards and engineering excellence; such collaboration will accelerate technological innovation and generate synergies, propelling industrial upgrading. 'By localizing production and innovation in China, our competitiveness in global markets has been reinforced.' The front fascia of these vehicles incorporates design elements inspired by the ancient Chinese ritual bronze vessel—the 'Ding'—symbolizing Scania’s unwavering commitment to quality ('a word carries the weight of nine Dings'); for the first time, the Chinese characters '斯堪尼亚' (Scania) appear as the official brand logo, signaling the company’s firm determination to deepen its long-term presence in the Chinese market… In March this year, Swedish heavy-truck manufacturer Scania Group delivered its first batch of NEXT ERA heavy-duty trucks, marking a new chapter in its deepened engagement with the Chinese market. The origin of these trucks—the Scania Rugao Industrial Production Base in Jiangsu Province (hereinafter referred to as the 'Rugao Base')—is Scania’s third global industrial production base and a key manufacturing hub in Asia. Fully owned and operated by Scania, the Rugao Base officially commenced operations in October last year, signifying a new stage in Scania’s localization journey in China. Policy breakthroughs were pivotal to this strategic move. In 2020, China issued its 'Negative List for Foreign Investment Access', lifting foreign equity ratio restrictions on commercial vehicle manufacturing. Scania swiftly finalized the Rugao Base project, becoming one of the first international commercial vehicle manufacturers to establish a wholly-owned plant in China—a landmark overseas investment representing Scania’s largest in nearly 70 years. Since then, Scania’s development in China has accelerated dramatically: the Rugao Base project was signed and launched in 2020; investment in the powertrain project was expanded in 2023; and a R&D company was established in Jiangsu Province in 2024… This century-old commercial vehicle giant has cast a resounding 'vote of confidence' in the Chinese market through concrete action.

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